A private sale means that a property owner is selling directly without involving a real estate agent. Some buyers opt not to use an agent, while others are wary of making such huge investments without professional guidance. But why do people opt to go this way?
In private sale real estate, both the buyer and the seller want to avoid agent commissions. After all, everyone wants to save their dollars. Of course, this method has both pros and cons, but here, we shall focus on the benefits.
Advantages of Private Sales to the Seller
The main benefit is saving real estate commissions costs that range anywhere from 5% to 6% of the purchase price. This commission is deducted right after closing and may be split between the seller and the buyer’s agents. Moreover, the seller has complete control of the price, adverts, listings, and showing of the property. This is an excellent benefit for sellers who have the time and knowledge of promoting real estate. That means they save on costs they would incur by hiring a realtor to market the property. The problem with marketing via a real estate company is that they usually have numerous listings; hence they may not dedicate their efforts to just one client.
Thanks to the internet, private sale real estate has become more convenient. Like hotel bookings where travelers no longer use agents, buyers can contact the property owners directly. Homeowners selling their houses have access to various online resources for listing and finding help through the whole process. Some websites allow sellers to get information on specific locations as well as professional guidance.
Advantages to the Buyer
The buyer of private property for sale is in direct communication with the seller, who has all the vital information at hand. And so they are assured of ready facts, including the history of the property and other critical details. On the contrary, a realtor may not answer all the questions and may give partial data because they want the deal closed as soon as possible. Only the owner can tell what improvements have been done to the walls, floors, and rooms. Plus, they know the exact possession dates and what perks are included in the offer. Someone who has lived in a property for long has personal knowledge of the neighborhood. So they know the costs of utilities in all seasons and what kind of people live around.
The real estate transaction needs to be closed through legal representatives from both parties. Attorneys are key players ensuring all goes well and that everyone is protected by law.
